International Trade Policies

Access to
markets affects business decisions. Various international trade policies affect the import and
export of goods and services to and from occupied territories. Below you will find links to major international trade policies
affecting access to and from markets in Crimea and Palestine.

Crimea

Due to the
Russian occupation of Crimea in March 2014, the United States,
European Union and other countries have imposed economic sanctions targeting commercial operations involving Crimean territory,
entities and individuals. In addition, there are sanctions that
primarily target businesses and individuals with close ties to the
current Russian administration.

United States:

Below are links to the U.S. economic sanctions:

Executive Order 13660 (March 6th, 2014): The United States government imposes
sanctions on individuals and entities involved in the annexation of
Crimea.

Executive Order 13661 (March 17th,
2014): The United States government imposes further restrictions on
Russian individuals and entities involved in the annexation of Crimea.

Executive Order 13662 (March 20th,
2014): The United States government imposes more sanctions on Russian
individuals and entities involved in the annexation of Crimea.

Executive Order 13685 (December 19th,
2014): The United States government imposes a full financial ban
prohibiting U.S. persons and entities from new investment, performing
transactions, exchanging
goods, services and/or technology with the region of Crimea.

Executive Order 13694 (April 1st, 2015): The United States government imposes more sanctions on the property of certain persons engaging in significant malicious cyber-enabled activities.

Crimea Sanctions Advisory (July 30th, 2015): The United States government issued this Advisory to highlight some of the practices that have been used to circumvent or evade U.S. sanctions involving Crimea.

Executive Order 13757 (December 28th, 2016): Cyber-related sanctions imposed by the United States government that takes additional steps to address malicious cyber-enabled activities relating to the Russian Federation.

European Union:

European Union (EU) sanctions are imposed pursuant to the EU’s autonomous Common Foreign and Security Policy (CFSP) powers. Decisions based on the CFSP powers require unanimity from the member states in The Council of the European Union. The Council of the European Union is made up of government ministers from each EU country and is responsible for negotiating and adopting laws.

July 5th, 2018: Extension of sanctions for six months until January 31st, 2019.

Other Countries:

Ukraine:

In August 2014, the Ukrainian Parliament passed legislation allowing the country to implement sanctions on Russia. In February 2015, Ukraine’s National Security and Defense Council voted to impose sanctions on certain Russian companies and individuals, as well as a blockade on Crimea.

Canada:

Canada imposed
sanctions on individuals and entities involved in the annexation of Crimea.

Australia:

Australia imposes
sanctions that are similar to those imposed by the European Union.

Japan:

Japan joins the EU and U.S. in imposing
sanctions on Russia following its occupation of Crimea.

Norway:

Norway joins the EU and US in imposing
sanctions on Russia following its occupation of Crimea. Click
here for the most recent updates.

Switzerland:

Switzerland did not join the EU
sanctions. However, it has imposed a number of measures to avoid
undermining the EU sanctions. Click
here for an outline of recent amendments in English with links to the full texts in German and French.

Russian Counter-Measures:

In December 2014, Russian President Vladimir Putin signed into law a decree establishing Crimea and the City of Sevastopol as a Free Economic Zone (FEZ). The FEZ, which was expanded to include the inland waters surrounding Crimea, offers tax breaks and other incentives to businesses operating in Crimea and will expire in 25 years.
Russia has introduced counter-sanctions against some of the countries that adopted economic sanctions targeting Crimean territory, entities and individuals, including the U.S., the EU, Norway, Canada and Australia. The counter-sanctions consist of a ban on specific individuals from entering Russia and an embargo on agricultural exports from these countries.

Palestine

There are
currently no economic sanctions in relation to the Israeli occupation of
Palestine. There are a number of bi- and multi-lateral trade
agreements that govern the import and export of goods
to and from Palestine. The occupation complicates the realization of
these trade agreements, as the Palestinians do not control their
borders. Imports and exports are largely controlled by Israeli
regulations. As a result, different countries have taken
different approaches to recognizing Palestine as a trade partner while
accounting for Israel’s involvement in the process.

Export Administration Act (1979): This act provides the U.S. government with legal authority to control U.S. exports as a matter of national security. The Act indicates that it is U.S. policy “to oppose restrictive trade practices or boycotts fostered or imposed by foreign countries against other countries friendly to the United States or against any United States person.” The Act has been applied to boycotts against Israel, particularly the Arab League Boycott.

U.S.– Israel Free Trade Agreement(1985): The U.S. trade agreement with Palestine is actually part of the U.S. Free Trade Agreement with Israel. In 1996, the U.S. signed a Declaration of Free Trade between the U.S. and West Bank and Gaza Strip. However, it became obvious that its successful implementation depended upon Israel’s agency. The declaration was thus incorporated into the U.S.-Israel agreement.

Canada
– Israel Free Trade Agreement (CIFTA) (1997):
After signing the Framework
on Economic Cooperation and Trade Between Palestine and Canada, the
sides acknowledged that its successful implementation depended upon
Israel’s agency. Therefore,
the framework was incorporated into the Canada – Israel Free Trade
Agreement. CIFTA was updated in 2014.

Euro-Mediterranean
Interim Association Agreement
(July 1997): The
EU concluded an agreement that provides preferential treatment to goods
and services imported from the West Bank and the Gaza Strip. Unlike the
U.S., the EU concluded a separate
agreement with Israel.

Court
of Justice of the European Union
(2010): Implementation of the Euro-Mediterranean Agreement with
Israel became controversial due to the court ruling that products
manufactured in Israeli settlements should not receive the trade
benefits specified in the agreement, as they did not originate
in Israel.